Lufthansa Wins Bid for 44.9% Stake in TAP Air Portugal
The Portuguese government selected Lufthansa to acquire a 44.9% stake in TAP Air Portugal for 1.2 billion euros, outbidding Air France-KLM.
The Government of Portugal selected Lufthansa to acquire a 44.9% stake in TAP Air Portugal for 1.2 billion euros. Prime Minister Luis Montenegro announced that Lufthansa won the bid over rival Air France-KLM, noting that the winning offer exceeded the competitor's by 16%.
The deal is designed to integrate the Portuguese flag carrier into a larger aviation group to increase resilience against rising jet fuel prices and broader industry consolidation. TAP Air Portugal is particularly valued for its strategic landing slots connecting Lisbon with Brazil, Portuguese-speaking Africa, and the United States.
While the government remains the primary shareholder for now, it has reserved 5% of the company for TAP's 9,000 employees to purchase shares. The government intends to complete the full privatization of the airline by 2028. The agreement currently awaits regulatory approval from the European Union.
